United Nations Development Programme. Samoa Integrated Framework for Trade-Related Technical Assistance (IF)

Transcription

1 United Nations Development Programme Samoa Integrated Framework for Trade-Related Technical Assistance (IF) The aim of the Integrated Framework project is foremost to assist Samoa to expand its participation in the global economy while contributing to sustainable growth with poverty reduction and human development. The IF project is to provide Samoa with the inputs for mainstreaming gender balanced development oriented sustainable trade objectives under its Strategy for the Development of Samoa (SDS), ; to address its supply side constraints and provide Samoa with a coordinated and responsive mechanism of trade related technical assistance from the international community. April

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3 Section I Part I. Economic and social situation Samoa is a small, mountainous volcanic island state in the South Pacific. About 20 per cent of land is arable, 48 per cent is covered by forest, while 3.6 per cent is under permanent crops. Natural disasters affect the economy periodically particularly, tropical cyclones. Despite its vulnerability to natural disasters, the Samoan economy has experienced relative steady and persistent real growth in a stable economic and political environment over the past decade. As is the case for most small islands least developed countries with limited natural resources and domestic market opportunities, trade constitutes one of the most important factors for the country s socioeconomic performance and development capacity for the achievement of the Millennium Development Goals (MDGs) by 2015 and a number of global and regional commitments. Samoa has been remarkably successful in achieving its macroeconomic targets of sustaining GDP growth, maintaining balanced budgets, keeping inflation low and stable, targeting a competitive exchange rate, and maintaining a sustainable external balance. Samoa s economic and social progress can be attributed to the combined impact of a robust economic growth, substantial remittances from Samoans abroad, and the maintenance of relatively high levels of public expenditure on education and health. However, concerns remain over inequality of income distribution, hardship amongst some groups, a lack of formal employment and income-generating opportunities for school leavers, limitations in access to a high quality education, the incidence of noncommunicable diseases, and some social problems. Samoa s Human Development Index (HDI) increased from in 1985 to in 2007 (75 th out of 177 countries in ), placing it in the medium human development category. The nation also is well advanced in achieving the eight Millennium Development Goals (MDGs), with only the MDG for environmental sustainability lagging. National development is currently guided by the Strategy for the Development of Samoa, : Enhancing People s Choices (SDS). The fundamental development challenge for Samoa is to generate private sector led growth in output and employment as the means for raising living standards and reducing hardship. In the Strategy for the Development of Samoa, , the private sector is identified as the engine of growth for the country s economy. Its role in improving the performance of trade is essential and the Government has initiated positive policy directions for future economic growth through strengthening of the agriculture and tourism sectors, building up of an entrepreneurial community as a focus of growth, and working in partnership with the private sector, including civil society organizations (CSOs), and the donor community to support increased international, regional and local trade initiatives. 1 UNDP Human Development Reports 1990 and 2007, respectively. 3

4 Population (millions) ,186 Population growth rate (%) 1.4 Life expectancy at birth (yrs) 74 Fertility rate (%) 4 Adult literacy rate (%) 96 HDI/rank.778/75 As typical of most small islands states, Samoa faces several key challenges and development constraints as it strives to sustain strong economic growth and improve living standards of its population These include a small domestic market, narrow and fragile resource base, a shortage of key skilled personnel, inclusive consultation on the country's pro-poor trade policy and trade integration strategy, and the role that trade can play in its overall development. It will be crucial to ensure that a wide range of views of both women and men, young and old, from both rural and urban settings, are sought and integrated into the study findings and recommendations. The findings/outcome of the consultation phase will help guide and define the Diagnostic Trade Integration Study (DTIS), especially through human development and gender lenses. Section 11 Part 11. Strategy As part of the UN Development Assistance Framework (UNDAF), and Samoa s Country Programme Action Plan (CPAP), , under Outcome 1: equitable economic growth and poverty reduction, UNDP will take the lead role in spearheading the Integrated Framework (IF) for trade in direct response to the new Strategy for the Development of Samoa (SDS), , through strengthening of the private sector s trade initiatives. The high-level WTO-based Integrated Framework Steering Committee (IFSC) and Working Group (IFWG), designated UNDP as the lead agency for the Samoa trade mainstreaming exercise and as such, the UNDP Samoa Multi-Country Office will work in strong collaboration with the Trade and Human Development Unit (THDU) of UNDP in Geneva and the Government of Samoa in ensuring that this work is undertaken in accordance with the expected outcomes. The Diagnostic Trade Integration Study (DTIS) assesses the overall competitiveness of the country s economy, identifies sectors of greatest export potential, outlines constraints and opportunities to trade, and presents an Action Plan, also known as an Action Matrix. It provides the analytical foundation for policy recommendations and Trade Related Technical Assistance and Capacity Building (TRTA/CB) formulation for the country s integration into the multilateral trading system after its accession to WTO. It also represents a powerful tool for linking trade strategies and priorities to the overall national development architecture for Samoa. For further details refer Annex 1 which provides the full TOR for the DTIS. The project will be nationally executed building on government s existing capacity to assume full responsibility for the achievement of the outcomes of this project, supported by UNDP. The Implementing Partner, that is, the Ministry of Foreign Affairs and Trade 4

5 will collaborate closely with the Ministry of Finance in ensuring that all reporting requirements to UNDP are met. The project will produce the following main outputs: 1. Development of the Aide Memoire for the Diagnostic Trade Integration Study (DTIS) for Samoa; 2. Preparation of the DTIS for approval of Cabinet. 3. Mainstreaming of the pro-poor trade integration strategy into the new SDS, Development of Aide Memoire The activities under this output include: 1.1 The recruitment of a national DTIS Team Leader to work with the government and UNDP MCO in Samoa on the development of the Aide Memoire and preparation of the DTIS for approval of Cabinet; 1.2 Local consultations with all local stakeholders in preparation of above output. 1.3 Local travel where necessary. 2. Preparation of the DTIS for approval of Cabinet The activities under this output include: 2.1 The recruitment of suitably qualified national and/or international consultants by the IP to undertake extensive and thorough research, analytical studies and drafting of the DTIS, which essentially is the project document for implementation of the third and final phase of the DTIS. The exercise will serve the purpose of identifying the key constraints and challenges to the country's integration into the multilateral trading system and the global economy, and will: (i) review and analyse Samoa s economic and export performance using key disaggregated data; (ii) assess the macroeconomic environment and the country's investment climate; (iii) assess the international policy environment and the specific constraints that the country's exports face in international markets; (iv) analyse key labour-intensive sectors for expansion of output, exports and equal employment opportunities given key environmental issues facing the country; (v) assess the poverty and pro-poor strategies that can be adopted to ensure equitable outcomes for men and women, for rural and urban settings, and {vi) conclude recommendations for trade policy reforms, institutional capacity implications, and an action plan to remove bottlenecks and respond to the opportunities identified in the diagnostic study. Again the opportunities will ensure gender and environmental issues are adequately addressed The last element is very important because it will constitute the Action Matrix which is a set of policy recommendations and priority technical assistance needs to overcome the identified constraints-that will be presented together with the DTIS at the national trade integration workshop, the National Validation Workshop (refer 3.1 below). 2.2 Local consultations with stakeholders; 2.3 National and international travel costs that are necessary. 5

6 3. Integration of the pro-poor strategy into Samoa s new Strategy for the Development of Samoa (SDS), The activities under this output include: 3.1 A national DTIS validation workshop will be convened in Apia to confirm the DTIS document. 3.2 Identification of an IF Coordinating Development Partner. Part III. Management Arrangements This project will be nationally executed. The Ministry of Foreign Affairs and Trade (MFAT) has been designated as the Implementing Partner (IP) for the project. MFAT will work in close collaboration with the UNDP Samoa Multi-Country Office (MCO) to ensure that all necessary processes are followed according to the Guidelines and preparation of project documentation at various stages of the IF process. The Ministry of Foreign Affairs and Trade is the National IF Focal Point in-country supported by the National IF Steering Committee made up of respective sectoral representatives (refer Annex 3 for TOR, which has been approved by Cabinet) which needs to be confirmed once it meets to ensure that it satisfies the requirements of government and stakeholders as well as the IF and UNDP MCO, Apia. Annex 4 provides a generic structure of the entire IF mechanism in Samoa showing key roles and entities, which can be customized by the Steering Committee if it so deems necessary or helpful once the project is commenced. A team of local and international experts, led by a Team Leader (refer Annex 2 for TOR) designated by the Government of Samoa will be responsible for the DTIS exercise with the MCO and the THDU supervising the process in collaboration with the national IF Focal Point and UNDP Samoa. The Implementing Partner will be responsible for all procurement related to the project using applicable standard practices in the local context, including the recruitment of national and international consultants for the project, and monitoring and evaluation of their performances against expected outputs. The five other IF cooperating agencies 2 will serve as partners. Each of the agencies will be expected to provide technical support to the IF team based on its comparative advantages and competencies, if required. All relevant communication incountry will be led by the Ministry of Foreign Affairs and Trade as the national IF focal point. The government will coordinate the process of identifying an IF Coordinating Development Partner (CDP) reference Annex 5 for TOR, from amongst Samoa s development partners, who would be willing to take on the responsibility of supporting Samoa s DTIS Aid Memoire and promoting it to the international community. The Coordinating Development Partner will be expected to work in close association with the Team Leader to achieve the objectives of the IF project in Samoa and the National IF Focal Point and Steering Committee, under Samoa s aid coordination framework. 2 UNCTAD, WTO, IMF, UNDP, ITC 6

7 The DTIS will be funded out of Window I (Tier 1 under the Enhanced IF Guidelines) of the global Integrated Framework Trust Fund to the tune of US$285,714 (a General Management Support (GMS) fee having been deducted by UNDP from the full US$300,000 that Samoa was originally allocated to cover minimum management costs for the Trust Fund). Part IV. Monitoring and Evaluation. The project will be subjected to UNDP project monitoring and evaluation in line with standard guidelines and procedures, and can be encapsulated in any evaluation initiative by the IFWG and/or IFSC. An inception visit by the UNDP MCO to the Implementing Partner (IP) will be held as soon as the project has been approved, to determine what capacity strengthening needs there are as well as provide hands-on guidance to the IP team on the UNDP NEX programming and reporting arrangements. It is intended that the project will provide the necessary ongoing support to the IP to help it to perform well its implementation functions in the longer-term. The MFAT, together with the Steering Committee will undertake continuous monitoring using target outputs specified in the Results Framework. Each will assess the performance indicators regularly. UNDP Samoa, in close collaboration with the MFAT will monitor and support the implementation of the project based on the monitoring tools listed below: Field visits: The project will be subject to field visits to be coordinated by the IPS. Field visits serve the purpose of validation, and they include assessment of progress, results and problems. Field visits report will be used to assess the progress of the project. Financial and Progress Report: Quarterly financial as well as progress reports needs to be submitted as per the usual UNDP reporting requirements. Progress relating to outputs and indicators, activities as well as results achieved should be included. Project issues as well as risks should also be included. Audit: An audit for the project is to be carried out in accordance with UNDP auditing guidelines. Part V. Legal Context 1. This project document shall be the instrument referred to as such in the attached Supplemental Provision Article Annex Consistent with the above Supplemental Provisions, the responsibility for the safety and security of the Implementing Partner and its personnel and property, and of UNDP s property in the Implementing Partners custody, rests with the implementing partner. 3. The Implementing partner shall: 7

8 a) put in place an appropriate security plan and maintain the security plan, taking into account the security situation in the country where the project is being carried; b) Assume all risks and liabilities related to the Implementing partners security, and the full implementation of the security plan. UNDP reserves the right to verify whether such a plan is in place, and to suggest modifications to the plan when necessary. Failure to maintain and implement an appropriate security plan as required hereunder shall be deemed a breach of this agreement. 4. The Implementing partner agrees to undertake all reasonable efforts to ensure that none of the UNDP funds received pursuant to the Project Document are used to provide support to individuals or entities associated with terrorism and that the recipients of any amounts provided by UNDP hereunder do not appear on the list maintained by the Security Council Committee established pursuant to resolution 1267 (1999). The list can be accessed via This provision must be included in all sub-contracts or sub-agreements entered into under this Project Document. 5. The host country-implementing partner shall, for the purpose of the Supplemental provision, refer to the Government cooperating agency (i.e. the Ministry of Finance as the designated National Coordinating Authority for UNDP projects and programmes) described in that Agreement. As support to the implementing partner, the UNDP country office will provide support services for some of the activities of the project as identified and agreed upon by all parties, in the following areas: a) Identification and recruitment of the International Consultants, b) Identification and facilitation of training services, c) Procurement of identified goods and services; However, where UNDP processes are used the country Office will charge 5% of the total budget line for the provision of all the identified and agreed upon goods/ services. 6. The following types of revisions may be made to this Project Document with the signature of UNDP Resident Representative only, provided he/she is assured that the other signatories of the project document have no objection to the proposed changes: a) Revisions in, or in addition to, any of the annexes of the programme document; b) Revision which do not involve significant changes in the immediate outcomes, outputs or activities of the project, but are caused by the rearrangement of inputs already agreed upon or by cost increases due to inflation; and c) Mandatory annual revisions, which re-phase the delivery of agreed project inputs, or reflect, increased expenditure or other costs due to inflation or take into account agency expenditure flexibility. 8

9 Section III The Annual Work Plan and Budget Year: Project Number: Project Title: Samoa Integrated Framework for Trade-Related Technical Assistance Expected outputs 1. Preparation of TOR and Aide Memoire Key activities List all to be undertaken during year 1.1 Finalization of Aide Memoire by the Cabinet Development Committee (CDC). Timeframe Q4/ 07 Q1/ 08 Q2/ 08 X Q3/0 8 Q4/ 08 Responsible partners UNDP Samoa, MFAT, Team Leader Source of funds IF Trust Fund UNDP Don or IFTF Planned budget Description *Recruitment of IF Team, Leader (salary for 12 months ) Amount * Consultations 2,000 & site visits 1.2 Concept Team Leader Note finalized. Subtotal: 60,000 51, DTIS report and Action matrix approved by Cabinet. 2.1 Research analysis, sector assessment, impact assessment, drafting of DTIS report and X X X UNDP Samoa, MFAT, Team Leader & Consultants IF Trust Fund UNDP IFTF *Travel costs (3 missions) 1 *Consultants (International/nat ional) 2 58,000 46, USD$17,000 (incl. Accommodation) 2 3 USD$15,600 (travel & accommodation refer note 3) 3 3 research studies if USD$1,800 9

10 compilation of action matrix. * Research studies (3 x in 08) 3 * Relevant sectoral consultations 5,400 6,000 *Contingency 3,500 (other personnel costs) Subtotal: 112, Capacity Support to IF Secretariat (National) 11,000 Total 183,700 10

11 Expected outputs 2. DTIS report and Action matrix approved by Cabinet. Key activities List all to be undertaken during year 2.1 Research analysis, sector assessment, impact assessment, drafting of DTIS report and compilation of action matrix. Timeframe Responsible partners Q4/ Q1/ Q2/ Q3/ Q4/ X X X X UNDP Samoa, MFAT, Team Leader & Consultants Source of funds IF Trust Fund UNDP Planned budget Don Description or IFTF *Travel costs (2 x missions in 09) 4 * Consultants (local/internation al) * Research studies (2 studies in diff. sectors) 5 Amount 34,000 31,200 3,600 * Remaining Consultations for chapters of DTIS 6 2,714 *Contingency 3,500 (other personnel costs) Subtotal: 75, x USD$17,000 (incl. accommodation) 5 2 x sectoral research studies (topics USD$1,800 ea. 11

12 3. Pro-poor trade integration strategy adopted and mainstreamed into the new Strategy for the Development of Samoa, National validation workshop convened to review and endorse DTIS findings/ recommendation s. X UNDP Samoa, MFAT, IF Trust Fund UNDP IFTF *Workshop 7 *Miscellaneous expenses Subtotal: 17, Capacity Support to IF Secretariat (National) 10,000 Total 102,014 15,000 2,000 6 If needed, collating of further information/data & site visits by consultants or NFP 7 National Validation Workshop for ALL involved stakeholders (Funding Agencies pay own expenses) 12

13 Annexes 1. Generic Terms of Reference (TOR) for the Diagnostic Trade Integration Study (DTIS) 2. TOR of DTIS Team Leader 3. TOR of Steering Committee 4. Generic Structure of the Integrated Framework for Trade in Samoa 5. TOR of Coordinating Development Partner (CDP) 6. Supplemental provision for the project document 13

14 Annex 1 GENERIC TERMS OF REFERENCE FOR THE DIAGNOSTIC TRADE INTEGRATION STUDY (DTIS) UNDER THE INTEGRATED FRAMEWORK TERMS OF REFERENCE The Diagnostic Trade Integration Study (DTIS) assesses the overall competitiveness of a country s economy, identifies sectors of greatest export potential, outlines constraints to trade, and presents an Action Plan, also known as an Action Matrix. It provides the analytical foundation for policy recommendations and Trade Related Technical Assistance and Capacity Building (TRTA/CB) formulation for the country s integration into the multilateral trading system. It also represents a powerful tool for linking trade strategies and priorities to the overall national development architecture. Given the distinct situation of, and conditions prevailing in, beneficiary countries, it is recognized that integration studies must be country-specific. The extent to which reports will focus on specific aspects of the economic situation will depend on the amount of work that has already been completed on trade-related matters. For some countries, integration studies may emphasize sectoral issues, as the macro-economic environment and reform agenda may be well understood. In other countries, especially those with no history of a WTO Trade Policy Review report, the focus will include a detailed assessment of prevailing trade patterns, related policies on investment incentives and economic efficiency. Thus, it must be understood that integration studies will not follow a one size fits all approach. Rather, the integration strategy and related action plans must be tailored to the specific needs of each country, and fit within the development framework proposed by that country. There are however, certain areas that have been identified as important constraints for the integration of LDCs into the multilateral trading system. These areas will probably be reflected, in one form or other, in the integration studies. As a general principle, the starting point of all DTIS studies will be an appraisal of past trade reforms and ensuing results. The study will also have to focus on sectors which the interim PRSPs have identified as the key areas where a specific country has decided to focus, as well as existing work undertaken by the country and its development partners. Integration studies will typically have five components. First, a review and analysis of the country s economic and export performance. This would include real per capita growth, poverty trends, and integration performance in a historical and international perspective. Particular attention will be paid to indicators of per capita income, trade and integration performance vis-à-vis those of comparator countries. Analysis will focus inter alia on trends in export and import to GDP ratios, FDI as a share of GDP ratio, type of FDI (by sector), the speed and extent of export diversification (across products and markets), intra-industry trade trends (horizontal and vertical; role of global production sharing and processing trade), the composition of imports (share of capital goods, intermediates), international telecommunications traffic, composition of 14

15 employment, dependence on agricultural production, etc, as well as sources of foreign exchange earnings by sector (including services). The analysis of these indicators will be forward as well as backward looking. Second, a description and assessment of the macroeconomic environment and the country s investment climate. Particular emphasis will be placed on the adequacy of policies (both macro and microeconomic) and the business environment (property rights, rule of law). Trade and related policy developments and the behaviour of the real exchange rate will also be reviewed. The objective here is to assess the incentive regime that confronts (potential) investors, both in tradable and nontradables. Areas to be addressed/assessed include customs clearance (existence and functioning of temporary admission and drawback mechanisms and exemptions, the structure and effective incidence of tariffs and related red tape costs), access to and cost of pre-shipment finance and working capital, as well as barriers to investment (regulations, negative lists, equity restrictions and nationality requirements, role of state-owned enterprises, including status of privatisation programs, transfers from the budget, capital controls). Third, a focus on the international policy environment and specific constraints that exports from each country face in international markets. In many countries, policy recommendations aimed at export promotion have been made without paying attention to prevailing trade restrictions in the importing countries. This section will seek to: (i) (ii) (iii) Document the specific set of trade restrictions (and preferential trade arrangements) that exist in industrial country markets for the existing and potential export products. This will allow LDCs to have reliable information to argue for greater market access in global forums, as well as adjust their policy interventions so as not to be penalized by the restrictions in world markets. Determine the impact of membership in regional economic integration arrangements on the prevailing policy stance by explicitly considering the benefits and costs of such agreements in terms of policy freedom and investment incentives. Analyse the implications of greater market access for the existing and potential export commodities, including services, both regionally and globally. 1 Fourth, a focus on a small number of key labour-intensive sectors, including agriculture (e.g. horticulture), where the private sector can contribute to a significant expansion in output and exports, and a good a priori case can be made that the poor stand to benefit either in terms of employment and/or lower prices. For each sector/product, the team will analyse the internal constraints that entrepreneurs face in expanding production and exporting to the rest of the world. These analyses will be targeted on a set of priority sub sectors, to be determined after consultations with stakeholders in the country, in line with the broad priorities that are being incorporated into the PRSPs. While constraints will vary among countries, there are a series of common obstacles that prevail in many countries, namely transaction costs, the regularly environment, and the global and regional rules and disciplines. 1 While the implications of trade liberalization for developing countries have been made on an aggregate and regional basis, there are very few country specific analyses of the constraints and benefits each country face in the industrial country markets. 15

16 Fifth, each study will conclude with a pro-poor trade integration strategy. This will comprise of a proposed set of policy reform priorities and action plans at the sectoral level that include project proposals to capitalize on major opportunities identified in the strategy. These policy proposals will target the key bottlenecks and constraints that emerge as priority areas for action, and corollary actions by donors and development partners. The sectorspecific analyses will result in recommended action plans that identify key priorities and bottlenecks that must be addressed so as to mobilize investment and exports. Each study will also include an assessment of technical assistance and capacity building priorities to support the trade strategy, as well as recommended actions that should be taken by high-income and regional partner countries to improve access to their markets. The recommendations will take into account the likely impact of proposed actions on the level and structure of poverty to ensure that the strategy has the desired positive impact on the poor. An analysis of gainers and losers from policy changes will be undertaken, and specific policies to minimize any possible detrimental impact on the poor will be identified. Lastly, on the basis of the detailed analysis made, the DTIS study draws up an Action Matrix (also called Action Plan) comprising policy reform measures and institutional strengthening activities that will serve as a basis for trade-related technical assistance delivery. It should be clear that a typical Action Matrix does not contain concrete project proposals. Project proposals will be prepared during the implementation. 16

17 Annex 2 TERMS OF REFERENCE AND GUIDELINES FOR THE TEAM LEADER OF THE DIAGNOSTIC TRADE INTEGRATION STUDY IN SAMOA UNDER THE INTEGRATED FRAMEWORK BACKGROUND The IF work program in Samoa starts with the preparation of a DTIS. The purpose of the trade integration study is to identify key constraints to the country s integration to the multilateral trading system and the global economy. It therefore includes: (i) a review and analysis of the country s economic and export performance; (ii) an assessment of the macroeconomic environment and the country s investment climate; (iii) an assessment of the international policy environment and the specific constraints that the country s exports face in international markets, (iv) an analysis of key labor-intensive sectors for expansion of output, exports and employment; and (v) concluding recommendations for policy reforms, institutional capacity implications, and action plans to remove bottlenecks and seize opportunities identified in the diagnostic study. The last element is very important because it will constitute the Action Plan set of policy recommendations and priority technical assistance needs to overcome the identified constraints that will be presented together with the DTIS at the National Validation Workshop (also called a National Trade Integration Workshop). The country study is to be undertaken by a team of local and international experts if needed and capacity building is expected to comprise an important part of the exercise. Based on the findings of the diagnostic study, the team will: Suggest a program of TA to strengthen the overall competitiveness of the economy and of the selected sub-sectors (a draft IF report will be presented to the Government and the donor community for discussion and action). Hold a `trade specific` workshop or seminar in the country to discuss the draft report with relevant parties, including donor community, and civil society, with a view to raising the profile of trade issues within the overall context of the any existing poverty reduction strategy documents The Samoa Government is then expected to include the major conclusions of the study in those poverty reduction strategies that exist.. PURPOSE OF THE PRELIMINARY MISSION A preliminary mission was conducted the Samoa by IF representatives of UNCTAD, WTO (IF Secretariat) and the UNDP Trade and Human Development Unit in Geneva, in January 2008, to inform the government and stakeholders about the Enhanced Integrated Framework for Trade guidelines and develop an Aide Memoire based on subsequent discussions with the government and stakeholders, which outlined the key issues to be addressed by the DTIS. The broad objective of the preliminary mission was to lay the groundwork for the DTIS and delineate the scope of the mission while working closely with the IF Focal Point and the IF 17

18 Steering Committee. The mission established clear objectives for the DTIS and preparations for the main mission by taking stock of past and on-going work, and enabling the mission leader to build contacts with key stakeholders, including the government Focal Point, as well as representatives of the core agencies on the ground and the Geneva-based agencies. At the conclusion of the preliminary mission, a draft TOR for the DTIS prepared by the National Focal Point in consultation with the government and stakeholders, was discussed. It is important to note however that the Team Leader would be required to add inputs on the existing and on-going work in and the needs specific to Samoa in the DTIS, the priorities outlined by the government and inputs by stakeholders, donors and the IF agencies. The country-specific TOR for a DTIS for Samoa will then spell out the scope and focus of the part of the study analyzing the issues common to all DTIS and lists the sub-sectors to be focused on for Samoa. The specific activities to be undertaken and topics to be covered during the preliminary mission are as follows: a) Discuss the scope and content of the proposed study with the government authorities, agencies, donors, private sector and civil society. b) Establish a clear work plan to include timing of main mission, national workshop and the domestic review process, and timing/objectives with respect to existing poverty reduction strategic documents or reports and Consultative Group/Roundtable meetings. c) Establish close contact with the IF Focal Point and the National Planning and Aid Coordination Divisions of the Ministry of Finance. Ensure that ministries of Finance and Trade, as well as other relevant ministries, internalize and own the country IF process and objectives. d) Establish the role of the National Planning and Aid Coordination Divisions of the Ministry of Finance in the IF process and explore linkages with the other relevant national development strategies. If possible, a presentation should be made to a relevant national planning Steering Committee or relevant sub-committee on the IF exercise. e) Initiate relationships with the private sector, research partners and other stakeholders and create mechanisms for keeping partners in the field informed. f) Contact the IMF and World Bank and any other IF core agency representatives that may be in Samoa (ITC, UNCTAD, WTO) 1 and other interested donors (EU, NZAID, AUSAID, etc.). Arrange a briefing to the local UN Heads of Agencies during the preliminary and main missions. g) The government and the UNDP Resident Representative will guide the mission leader in this regard. In this context, use the mission to establish an IF Donor 1 While there may not be representatives from ITC, UNCTAD or WTO on the ground, any project managers of on-going projects being implemented by these agencies as well as FAO and UNIDO should be visited. 18

19 Facilitator/Lead Donor, if not yet established, to work closely with government and UNDP in DTIS preparation and follow-up. h) Visit key research institutions and think tanks to explore possibilities for collaboration during the IF exercise. i) Assess existing work on trade and TRTA in the country and gather trade-related research and related materials on technical assistance. j) Identify Focal Points in the local UNDP office for the IF. The Preliminary Mission Report An Aide-Memoire was formulated after the preliminary mission which outlines key aspects of the discussion and reflects at a minimum the following key outcomes: Identification of country interests in trade-related analysis as a basis for countryspecific TOR of the DTIS. Summary of working arrangements agreed with the government IF Focal Point, as well as IF Focal Points in the UNDP office, and IF Facilitator. Proposed timing of main mission and detailed schedule of other IF related activities, including national workshop. Identification of any immediate assistance required to help authorities engage in DTIS and DTIS follow-up process (funding from the IF National Implementation Arrangements Project, USD 38,000/country, Window I of the IF Trust Fund, is available towards these needs). Identification of working arrangements with government, private sector and possible civil society stakeholders (NSC, main mission counterparts for each area of the DTIS to cover, consultative process). Identification of agreed upon objectives for the IF process, including where possible general benchmarks to monitor progress. Confirm generic TOR for National IF Steering Committee (Annex 3). Confirmation of the IF Donor Facilitator/Lead Donor (i.e. UNDP proposed by Government), if not yet officially confirmed. The DTIS Team Leader will discuss and finalize with the Government the Aide Memoire comprising a timetable, institutional arrangements and a description of the areas to be covered in the DTIS. 19

20 Post-Preliminary Mission and Follow-up The Aide Memoire (including country specific TORs, list of consultants and proposed budget of the diagnostic study) will be circulated to the core agencies and the UNDP country team for inputs and clearance. The TOR will then be sent to the Government. Based on the revised TORs, missions will be organized and mounted to the country. The scene is now set up for the DTIS stage. Normally, the Government will indicate in a form of a letter signed by the responsible Minister their consent for the Aide Memoire to constitute an agreement on the IF arrangements, and scope and content of the DTIS. This will provide the Team Leader a mandate to go ahead with the DTIS as set out in the Aide Memoire. The Team Leader will also draft a Concept Note further elaborating the main issues to be analyzed in the DTIS. The Concept Note will be sent to the government and the IF core agencies for review and comments. MAIN DTIS MISSION Based on the Aide Memoire and Concept Note, i.e. the revised TOR for the DTIS, a full mission including all DTIS team members as well as international Consultants / local counterparts will be organized to the country. The DTIS Team Leader will lead the mission. She/he will be responsible for the organization of the mission in the field, coordination of team member s work and expected contributions and data collection as well as leading discussions with the government. At the end of the main mission, an Aide Memoire summarizing discussions held with the government and stakeholders and sketching out the DTIS report outline will be shared with the government. A brief Report including the Aide Memoire and outline discussed with the government will be submitted to the UNDP and a full DTIS report prepared. PREPARATION OF THE DTIS REPORT The Team Leader will draft parts of the DTIS report, as needed, as well as the DTIS Executive Summary and Action Matrix. She/he will also coordinate the production of the DTIS chapters by all team members. Under supervision of the Team Leader, other DTIS team members will draft relevant parts of the DTIS as per agreed in the DTIS outline. The DTIS report to be produced will develop a gender-sensitive pro-poor trade integration strategy made up of a proposed set of policy reform priorities and action plans for key sectors that can be developed into project proposals to capitalize on major opportunities identified in the strategy. The reform priorities will target the key bottlenecks and constraints that emerge from the analysis as priority areas for action, with a special focus wherever possible on sex disaggregated data collection on the differential roles of women and men in trading activities. The sectoral action plans will identify key priorities and bottlenecks that must be addressed in order to mobilize investments and exports. Each study will also include an assessment of technical assistance and capacity building priorities to 20

21 support the gender-balanced pro-poor trade mainstreaming strategy. The recommendations will take into account the likely impact of proposed actions on the sex disaggregated level and structure of poverty to ensure that the strategy has the desired positive impact on the poverty reduction goal. To the extent possible, an analysis of gainers and losers from the policy changes will be undertaken and specific policies to minimize any possible detrimental impact on the poor (including men and women, young and old) must be identified. The DTIS report of Samoa will be finalized by the Team Leader according to the following tentative timetable: Preliminary Mission: Concept Paper: Main Mission: Draft Chapters for Review by UNDP: Draft Report Submitted to UNDP: Draft Report Submitted to Government and IFWG: National Validation Workshop: Final Report: The Team Leader is responsible for the quality of the DTIS including professional editing at the standard required in a United Nations document. The document has to be edited to the meet these standards by the time it is submitted in its draft form to UNDP for a review. The Team Leader will, in collaboration with UNDP, present the results of the study with particular attention on the Action Matrix, in the National Validation Workshop. Duration: 12 months initially Qualifications: The Team Leader will have the following attributes: 1. Appropriate post-graduate qualifications in any of the following areas: economics, business management, international commercial law, environmental science, geography or any other proven academic post-graduate degree. 2. At least10-15 years experience in trading or business development is required. 3. Demonstrable experience in trading agreements affecting Samoa and trade in general in the Pacific Region and internationally is essential. 4. Experience in international negotiations would be an advantage. 5. Effective communication skills and proven leadership capacity and ability to work in multi-cultural, multi-disciplinary teams is highly desirable. 6. Strong written and oral competency in the English language is required. 21

22 Annex 3: TOR for National IF Steering Committee Objective The Project Steering Committee will provide policy guidance and oversight for the implementation of the DTIS in Samoa, to ensure the optimum completion of the entire project and will cease functioning after its anticipated completion in 2008, unless it is otherwise deemed appropriate to continue operating as the SC for subsequent phases of the IF in Samoa. Tasks - Provide overall policy guidance for the project; - Review the project activities, and their adherence to the work plan set forth in the project; - Document and approve any modification/revisions as may be necessary; - Provide support and advice to project staff and consultants on implementation of the project activities; - Review and endorse the project work plan in line with the project document; - Monitor the performance of the project; - Facilitate effective inter-agency sharing of information relevant to the project; - Evaluate and provide advice on all draft reports/policy papers etc produced as outputs of the project; - Generally provide an integrating mechanism across the three phases of the total project. Composition The Steering Committee will comprise representatives of the following: CEO of MoF (Chairperson) or her representative Ministry of Foreign Affairs and Trade (which will provide secretariat functions for the Steering Committee) Ministry of Commerce, Industry and Labour, Office of the Attorney General Public Service Commission Ministry of Agriculture and Fisheries Ministry of Women and Community Development Ministry of Health Ministry of Education, Sports and Culture Samoa Association of Manufacturers and Exporters Samoa Chamber of Commerce Samoa Umbrella for Non-Governmental Organisations UNDP MCO, Apia based Others as deemed appropriate by the Steering Committee Coordinating Development Partner Meeting Procedures The Committee shall meet as necessary as it deems appropriate, but no less than 14 days after the signing of the project document by UNDP and Government, to confirm its TOR and approve the work plan. 22

23 Annex 4: Generic Structure of the Integrated Framework for Trade in Samoa GOVERNMENT Policy dialogue Mainstreaming of trade in PRSP/ Dev. plans Inclusion of IF in CGs/RTs NATIONAL STEERING COMMITTEE DONORS Proposes Tier 1 work plan Proposes Tier 2 projects Reports on results Decision on NIL/FP staffing, logistics, etc. Decision on Tier 1 work plan Decision on Tier 2 projects Executive Secretariat Tier 1 & Tier 2 financial backstopping IF process advise & monitoring progress FOCAL POINT NATIONAL IMPLEMENTATIO N UNIT Systematic dialogue Donor Donor Facilitator Promotes public private sector dialogue Involves PS & CS in IF IF awareness raising Mainstreaming trade, operational coordination Technical advice & backstopping Assistance for DTIS Assistance for project formulation & implementation Private Sector & Civil Society Core Ministries IF Agencies 23

24 Annex 5: TOR of Coordinating Development Partner The present Guidance Note for the TOR and criteria of a Donor Facilitator was prepared based on the Recommendations of the IF Task Force, which stressed that to provide an effective response and avoid duplication of the agencies, donors and beneficiaries need to work together through local processes. To this end, it is vital that an effective local Donor Facilitator, with clear terms of reference adapted to the local situation, be appointed by donors in consultation with the local authorities. (Excerpt from the Draft Enhanced Integrated Framework Guidelines, May 2007, Reference Website: In the local context a robust aid coordination system is in place and effectively coordinating the assistance of donors active in Samoa and the preferred terminology for a DF in this context would be Coordinating Development Partner (CDP). Through a mechanism arranged by the Aid Coordination Division of the Ministry of Finance, the CDP will be selected by the donor community resident in the country and will be rotated on an accepted periodic timetable for the duration of the project, as has been the practice in other sector wide undertakings involving the donors. Necessary functions of the Coordinating Development Partner 1. Assists the Government to enlist and coordinate donor responses to the Action Matrix produced, including liaison with donors to ensure effectiveness, complementarity and harmonization of interventions, including exploring the possibilities for pool funding arrangements for implementation of action matrix priorities. 2. Follows up on the Action Matrix, especially on donors responses, to promote maximum coordination among donors. 3. Supports the NIU and the FP in the conduct of their responsibilities as per the established TORs. 4. Assists the NIU to formulate and appraise Tier 2 projects (for this, explore the possibility of utilizing the existing Cabinet Development Committee (CDC) system for the appraisal of all the Tier 1 and 2 projects).. 5. Assists the NIU to formulate and appraise Tier 1 projects and participate in their approval process. 6. Facilitates the Government s contacts with the donors by functioning as a link between the donors and the Government (when the Government and donors so desire). This entails ensuring that all relevant pieces of information regarding the IF and its implementation are adequately transmitted to IF stakeholders, including from the donors to the Government and from the Government to the donors. It also entails close coordination with, and being sensitive towards, the wishes of the National Implementing Unit (NIU) and the National Focal Point (FP). 7. Provides regular briefing updates to donors on IF progress, particularly those that are externally based through the Ministry of Foreign Affairs and Trade, and arranges for consultation and coordination possibilities for the donors present in the country. 8. Informs stakeholders, including the donors, on the progress and results of IF implementation. 24

25 9. Assists the local authorities in creating knowledge and understanding of the IF process in the country, especially at the higher political level. Suggested selection criteria 1. In principle, the role should be undertaken by the donor most active in the field of TRTA in the country; however, full commitment of the CDP to the role is essential. 2. In the instance the Donor cannot allocate sufficient internal resources to undertake the role, it may be worth considering the possibility of enlarging the CDP s team by employing a new person, eventually a national of Samoa, to ensure the functions of CDP are satisfactorily fulfilled. 3. The CDP must be resident in the country, or at least in the region. 4. At the request of the Government or the Coordinating Development Partner s Government, and after consultation with the key IF stakeholders in the country, the CDP can be replaced by another donor. 5. The function of a deputy CDP may be envisaged in certain LDCs. 25

26 The Legal Context Annex 6: Supplemental Provisions to the Project Document: General responsibilities of the Government, UNDP and the executing agency 1. All phases and aspects of UNDP assistance to this project shall be governed by and carried out in accordance with the relevant and applicable resolutions and decisions of the competent United Nations organs and in accordance with UNDP's policies and procedures for such projects, and subject to the requirements of the UNDP Monitoring, Evaluation and Reporting System. 2. The Government shall remain responsible for this UNDP-assisted development project and the realization of its objectives as described in this Project Document. 3. Assistance under this Project Document being provided for the benefit of the Government and the people of (the particular country or territory), the Government shall bear all risks of operations in respect of this project. 4. The Government shall provide to the project the national counterpart personnel, training facilities, land, buildings, equipment and other required services and facilities. It shall designate the Government Co-operating Agency named in the cover page of this document (hereinafter referred to as the "Co-operating Agency"), which shall be directly responsible for the implementation of the Government contribution to the project. 5. The UNDP undertakes to complement and supplement the Government participation and will provide through the Executing Agency the required expert services, training, equipment and other services within the funds available to the project. 6. Upon commencement of the project the Executing Agency shall assume primary responsibility for project execution and shall have the status of an independent contractor for this purpose. However, that primary responsibility shall be exercised in consultation with UNDP and in agreement with the Co-operating Agency. Arrangements to this effect shall be stipulated in the Project Document as well as for the transfer of this responsibility to the Government or to an entity designated by the Government during the execution of the project. 7. Part of the Government's participation may take the form of a cash contribution to UNDP. In such cases, the Executing Agency will provide the related services and facilities and will account annually to the UNDP and to the Government for the expenditure incurred. (a) Participation of the Government 1. The Government shall provide to the project the services, equipment and facilities in the quantities and at the time specified in the Project Document. Budgetary provision, either in kind or in cash, for the Government's participation so specified shall be set forth in the Project Budgets. 26